JAKARTA – The National Energy Council (DEN) said Thursday (17/3) that the fossil fuel in the energy mix will still dominate by 69 percent until 2050 as stated in the target of the National Energy Policy (KEN).
“The target for the new renewable energy mix is only 31 percent until 2050. The composition of energy is coal at 25 percent, oil at 20 percent, and gas at 24 percent. Fossil energy is still the mainstay with a share of 69 percent,” said Secretary General of the National Energy Council (DEN) Djoko Siswanto in a discussion of the Energizing Indonesia Forum entitled Oil and Gas and Energy Transition, Thursday (17/3).
According to him, Indonesia will still depend on fossil energy for the next 30 years. Adhering to a free and active policy, Djoko believes that the government is free to use domestic energy while actively following world agreements in the energy sector.
One of Indonesia’s roles globally is to take part in the Paris Agreement, in which the government commits to a transition to NRE with a target of 23 percent in 2025 and 31 percent in 2050.
“Currently, the realization of the NRE mix in Indonesia is only 11.7 percent, so that Indonesia is labeled as the most backward country in Southeast Asia in terms of energy transition,” he added.
According to a recent report by the International Institute for Sustainable Development (IISD), one of the factors that has made Indonesia’s NRE transition slow is the lack of investment. IISD noted that Indonesia only invested 1.51 billion USD or around Rp. 21.69 trillion for the development of NRE in 2021.
This figure is only 20 percent of the total investment needed every year from 2021-2025. Therefore, IISD experts urge Indonesia to make it easier to mobilize private investment in NRE development.
Previously, the Ministry of Energy and Mineral Resources projected that Indonesia would need 37 billion USD to achieve a green energy mix of 23 percent by 2025. Thus, Indonesia needs to invest more than 8 billion USD every year from 2021 to 2025 for the NRE sector. However, the government only targets the NRE sector investment to average USD 2.1 billion per year. (Hartatik)
